Published · Luxembourgish

Opening a Corporate Bank Account in China: A Practical Guide for Foreign Founders

A practical, plain-English overview of how foreign founders can open and operate a corporate bank account in mainland China, including document preparation, bank selection, common friction points, and ongoing compliance.

For most foreign founders, registering the company is the exciting part. Opening the corporate bank account is where the process slows down. In China, a company bank account is not a formality: it is the gateway to paying staff, receiving customer payments, settling taxes and moving capital in and out of the country. Banks are also required to carry out detailed know-your-customer (KYC) and anti-money-laundering (AML) checks, and they apply them seriously to foreign-invested entities.

This article explains, in general terms, how the process usually works, what documents to prepare, how to choose a bank and what to expect after the account is open. It is general information only and is not legal, tax or financial advice. Rules, bank policies and branch practices change, and they can differ by city, so confirm the current requirements with your bank and your local advisers before you act.

First, understand the account types

Chinese companies typically work with more than one account. The key distinction is between the basic deposit account (基本存款账户) and general deposit accounts (一般存款账户).

• Basic deposit account: The company's primary account. It is the only account from which you can withdraw cash, and it is normally the account used for payroll, tax payments and day-to-day operations. A company can have only one basic account, and it must be opened at a bank branch that has the authority to handle it.
• General deposit accounts: Additional accounts for specific purposes, such as receiving payments from a particular project or holding funds separately. You can have several, but they are secondary to the basic account.
• Foreign currency accounts: If you expect to receive or pay foreign currency, you will usually need a separate foreign currency account, often at the same bank.

Most new foreign-invested companies start with a basic RMB account and add a foreign currency account if needed. Ask the bank early which account types it can open for your entity and what each requires.

The usual sequence of events

Although details vary, the typical path looks like this:

1. Complete company registration. You need a valid business licence (营业执照) showing your unified social credit code. The bank cannot open an account for an unregistered entity.
2. Obtain the company seal set. Chinese companies use official seals, including the company seal, the legal representative's seal, the finance seal and sometimes a contract seal. Banks will ask for specific seals on specific forms.
3. Choose a bank and branch. Not every branch handles foreign-invested companies or foreign currency. Confirm capability before you visit.
4. Submit an application and complete KYC. This includes identifying the company, its beneficial owners, its legal representative and the purpose of the account.
5. Attend in person if required. Many banks require the legal representative to appear in person, at least for the initial account opening or for verification. Some banks allow a authorised representative with a notarised power of attorney, but policies differ.
6. Wait for approval and activation. Account opening is subject to internal review. Activation may take days or longer, and the bank may request additional documents.

Documents to prepare

The exact list depends on the bank and the city, but foreign founders should expect to provide most of the following:

• Business licence (original and copies).
• Articles of association and, where relevant, the foreign investment information report or filing records.
• Legal representative's identity document (passport for foreign nationals) and, in some cases, proof of address.
• Identity documents for beneficial owners and authorised signatories.
• Company seals, including the company seal and finance seal.
• Proof of the company's registered address, such as a lease or property certificate.
• Board resolution or shareholder resolution authorising the account opening and the signatories, if the bank requires it.
• Information on the company's business, expected transaction types, counterparties and volumes.
• For foreign currency accounts, supporting documents on the source and use of foreign funds.

Prepare clean, consistent translations where documents are not in Chinese, and make sure names and addresses match across documents. Mismatches are a common reason for delays.

Choosing a bank

There is no single best bank. The right choice depends on your business model, your city and how much international banking you need. Consider:

• Capability: Does the branch routinely handle foreign-invested companies, foreign currency and cross-border payments?
• English support: Larger banks and international banks often have English-speaking relationship managers, but branch-level service varies.
• Digital banking: Check whether the online platform works for your finance team, whether it supports English and how payments are approved.
• Fees and minimum balances: Ask about account maintenance fees, transfer fees and any minimum balance requirements.
• Proximity and responsiveness: A nearby branch with a responsive manager can matter more than a big brand name.
• Cross-border needs: If you will move money in and out frequently, ask specifically about foreign exchange and cross-border RMB services.

Common friction points

Foreign founders often run into the same issues. Knowing them in advance helps:

• In-person requirements. If the legal representative is abroad, confirm whether the bank will accept a representative with a notarised power of attorney, and allow extra time.
• Beneficial ownership disclosure. Banks look through the company to identify ultimate owners. Prepare a clear ownership chart.
• Business substance questions. Expect questions about what the company actually does, who its customers are and why it needs the account.
• Address verification. Registered address documents may be checked, and some banks conduct on-site visits.
• Document consistency. Names, addresses and identification numbers must align across all documents.
• Timing. Approval is not automatic. Build buffer time into your plans for payroll and customer payments.

After the account is open

Opening the account is the start, not the end. Keep the relationship in good order:

• Keep KYC information current. Update the bank when directors, beneficial owners, signatories or addresses change.
• Use the account as described. Transactions should be consistent with the business purpose you described during onboarding. Unusual flows can trigger reviews.
• Maintain records. Keep contracts, invoices and supporting documents for payments, especially cross-border transfers.
• Plan for foreign exchange. Cross-border payments and conversions are subject to China's foreign exchange rules and require supporting documentation. Work with your bank and advisers on the correct process.
• Reconcile regularly. Make sure your internal books match bank records and that tax payments are made from the correct account.

Practical takeaways

Treat the corporate bank account as a project with its own timeline. Choose a branch that has done this before for foreign-invested companies, prepare a complete and consistent document set, and make sure the legal representative is available or that a properly authorised alternative is in place. Ask the bank for its current document checklist in writing, and confirm in-person and notarisation requirements before you book travel. If your business involves significant cross-border flows, discuss foreign currency and foreign exchange arrangements at the outset rather than after the account is open.

Finally, remember that this guide is general information, not legal or tax advice. Banking rules and branch practices in China can change and vary by location, so verify the details with your bank, your corporate service provider and qualified local advisers before making decisions.